Head of 'Fly High' scam pleads guilty to fraud

Published: Thursday, November 28, 2013 at 7:52 p.m.

Last Modified: Thursday, November 28, 2013 at 7:52 p.m.

MIAMI — A South Florida man is facing up to 20 years behind bars after pleading guilty to fraud through a company called Fly High Investments.

Court records show that 27-year-old Daniel Paez pleaded guilty this week to securities fraud and will be sentenced Feb. 4. In addition to the prison time, Paez could be fined up to $250,000.

Prosecutors say Paez obtained at least $500,000 from investors between September 2010 and April 2012 by promising them a guaranteed, fixed rate of return and ability to withdraw money whenever they wished. Paez used telephone solicitation and the Internet to attract investors.

Instead, authorities say Paez spent most of the investors' money in gambling casinos and for his personal benefit.

Besides Florida, investors were victimized in California, South Dakota, New Jersey and Minnesota.

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